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G.R. No. 160283; October 14, 2005

Solidary Liability
Chan owned the Aringay Shell Gas Station in Aringay, La Union. It is
bounded on the south by Iglesia ni Cristos chapel. The gas station was
supposedly needed additional sewerage and septic tanks for its
washrooms. In view of this, the services Yoro, a retired general of the
AFP, was procured as Yoro was allegedly a construction contractor in
the locality.
They entered into a MOA which stipulated that [a]ny damage within or
outside the property of the FIRST PARTY (Chan) incurred during the
digging shall be borne by the SECOND PARTY (Yoro). Further, the MOA
discusses division of wealth in case hidden treasure is found during the
digging. After some time, Chan was informed by the members of the
INC that the digging traversed and penetrated a portion of the land
belonging to the latter. The foundation of the chapel was affected as a
tunnel was dug directly under it to the damage and prejudice of the
A complaint against petitioner was filed by the respondent before the
RTC La Union. Petitioner filed an Answer with Third-Party Complaint
impleading Yoro.
RTC: The diggings were intended to find hidden treasure! Chan and
Yoro solidarily liable to the respondent on a 35%-65% basis!
CA: I agree with RTC.
Chan avers that no liability should attach to him by laying the blame
solely on Yoro. He argues that the MOA executed between him and Yoro
is the law between them and must be given weight by the courts.
Since nothing in the MOA goes against the law, morals, good customs
and public policy, it must govern to absolve him from any liability.
ISSUE: W/N the MOA entered into by Chan and Yoro has the effect of
making the latter solely responsible for damages to the respondent?
HELD AND RATIO: NO. Chan is still liable.
INC says that the MOA clearly shows that the intention of the parties
therein was to search for hidden treasure. The alleged digging for a

septic tank was just a cover-up of their real intention. The aim of the
petitioner and Yoro to intrude and surreptitiously hunt for hidden
treasure in INCs premises should make both parties liable.
It should be noted that findings of the lower courts on this point are in
complete unison. Petitioner and Yoro were in quest for hidden treasure
and, undoubtedly, they were partners in this endeavor.
The basis of their solidarity is not the Memorandum of
Agreement but the fact that they have become joint
tortfeasors. There is solidary liability only when the obligation
expressly so states, or when the law or the nature of the obligation
requires solidarity.
All the requisites of a quasi-delict are attendant in the instant case. The
tortious act was the excavation which caused damage to the
respondent because it was done surreptitiously within its premises and
it may have affected the foundation of the chapel. The excavation on
INCs premises was caused by fault. Finally, there was no pre-existing
contractual relation between the petitioner and Yoro on the one hand,
and the respondent on the other. For the damage caused to
respondent, petitioner and Yoro are jointly liable as they are joint
tortfeasors. Verily, the responsibility of two or more persons who are
liable for a quasi-delict is solidary.
The heavy reliance of petitioner in the MOA cited earlier cannot steer
him clear of any liability. As a general rule, joint tortfeasors are all the
persons who command, instigate, promote, encourage, advise,
countenance, cooperate in, aid or abet the commission of a tort, or
who approve of it after it is done, if done for their benefit.
Indubitably, petitioner and Yoro cooperated in committing the tort.
They even had provisions in their MOA as to how they would divide the
treasure if any was found within or outside petitioners property line.
Thus, the MOA, instead of exculpating petitioner from liability, is the
very noose that insures that he be so declared as liable.
Besides, petitioner cannot claim that he did not know that the
excavation traversed the respondents property. In fact, he had two (2)
of his employees actually observe the diggings, his security guard and
his engineer Teofilo Oller.
Side issue (You may skip): INC wanted more exemplary damages. In
quasi-delicts, exemplary damages may be granted if the defendant
acted with gross negligence.

Surreptitiously digging under the respondents chapel which may

weaken the foundation thereof, thereby endangering the lives and
limbs of the people in worship, unquestionably amounts to gross
negligence. For such tortious act done with gross negligence, the Court
feels that the amount awarded by the Court of Appeals is inadequate.
The exemplary damages must correspondingly be increased to